Question

1. Comparative Earnings per Share Lucas Company reports net income of $2,520 for the year ended December 31, 2019, its first year of operations. On January 4, 2019, Lucas issued 9,000 shares of common stock. On August 2, 2019, it issued an additional 3,600 shares of stock, resulting in 12,600 shares outstanding at year-end. During 2020, Lucas earned net income of $18,120. It issued 3,000 additional shares of stock on March 3, 2020, and declared and issued a 2-for-1 stock split on November 3, 2020, resulting in 31,200 shares outstanding at year-end. During 2021, Lucas earned net income of $29,952. The only common stock transaction during 2021 was a 20% stock dividend issued on July 2, 2021. If required, round your final answers to two decimal places. Required: 1. Compute the basic earnings per share that would be disclosed in the 2019 annual report. Vetcome - 29 20 $1 .24 per share (9.000X + 12 VODX 5112) = 10500 To so 2. Compute the 2019 and 2020 comparative basic earnings per share that would be disclosed in the 2020 annual report. (12 600X2X1 +212,0D+ S000) *zym +131200x1112) 2020 - $ 1 00 per share 42001 20800 52.00 - 20 2019: $! -12 per share _18120 30200.60 3. Compute the 2019, 2020, and 2021 comparative basic earnings per share that would be disclosed in the 2021 annual report. Net income 29asa 1 112) 2021: Sl 0.80 per Share (31 260XT.x 12+ [131200+ (31200 * = 31200 x 1.2x6112 + 374408-12 2020: per share - 18720 + 187770 = 37440 2019: $ per share 0.24 = 0.12
how do i calculate the comparative basic earnings per share for years 2020 and 2019. show work please and thank you

Answer 1

Basic Ecanings per share Net income of 2019 $ 2,520 Weighted Average number of shares (9.000 x 2 + 3,600 ) - 10,500 shares Earnings per share - $2,520 $0.24 10,500 shares 2. For 2019 & 2020 Net income for 2020 = $18,120 Weighted Average no. of shares 12,600 x 2 x 2 +(3000 x?_*70 ) -30200 Earnings per share. $18,120 30,200 Sharee -$0.6 Company five figures for 2019 Weighted Average nod shares = 12,600x39) 25,200 Earnings per share = $2520 85,200 Sharee - 0.1 weighted Average number of shares Even As dividend (stock duidend) issued on July 2, 202) best as no resources will flow to entity.

So, we we need to assume as it declared on inception of the year for comparatives it assumed as declared at inception of the Comparative period. So weighted Average number of shapes a A 2021 87,440 shares (31,200X1.2) 2020 2019 87,440 shares 30,240 shares 31,200%1.2) (12600X2.81.2) Earnings Ⓡ $ 29,952 $18,120 $ 2520 Basic Econings per share $29,952 $18,120 37, 440 shares 37, uno shares $2$20 30,240 share $0.8 = $0.48 = $0.08